Terms : Hide Images
| 9173672471 | Utility-maximizing rule | Equating the ratio of the marginal utility of a good to its price for all goods. |  | 0 |
| 9173672472 | Marginal utility | Additional satisfaction or usefulness a consumer gets from having one more unit of a product |  | 1 |
| 9173672473 | Economic profit | Total revenue minus total cost, including both explicit and implicit costs |  | 2 |
| 9173676308 | Explicit costs | The actual payments a firm makes to its factors of production and other suppliers. |  | 3 |
| 9173676309 | Economies of scale | Factors that cause a producer's average cost per unit to fall as output rises |  | 4 |
| 9173681194 | Minimum efficient scale | the lowest production point at which long-run total average costs (LRATC) are minimized |  | 5 |
| 9173681195 | Law of diminishing returns | increasing one factor of production will increase output up to a point, then begin to decrease |  | 6 |
| 9173686755 | Imitation problem | situation in which firm's rivals may imitate newly invented product or process, so that profit gained by firm that initiated R&D process is greatly reduced |  | 7 |
| 9173686756 | Substitution effect | That portion of a change in quantity demanded due to a change in the relative price of the product |  | 8 |
| 9173689513 | Implicit costs | the opportunity cost equal to what a firm must give up in order to use a factor of production for which it already owns and thus does not pay rent |  | 9 |
| 9173689514 | Diseconomies of scale | the property whereby long-run average total cost rises as the quantity of output increases |  | 10 |
| 9173693622 | Natural monopoly | industry in which one company can most efficiently supply all needed goods or services |  | 11 |
| 9173693623 | Law of diminishing marginal utility | As the quantity of a good consumed increases the extra satisfaction gained decreases |  | 12 |
| 9173698188 | Fast-second strategy | Firms follow similar firms to become the second firm to produce a good; helps save on research and development |  | 13 |
| 9173698189 | Economic cost | The value of all resources used to produce a good or service; opportunity cost |  | 14 |
| 9173701754 | Normal profit | The accounting profit earned when all resources earn their opportunity cost |  | 15 |
| 9173701755 | Constant returns to scale | Features of a firm's technology that keep average total cost constant as output increases. |  | 16 |
| 9173707747 | Expected-rate-of-return curve | for each dollar spent, there is a minimum amount the company expects in return |  | 17 |
